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Property/casualty insurers must prepare for issues including cyber-risk, reputational risk and an increasing threat from natural catastrophes, industry experts say. "Companies with global exposures and an expanding global reach need to be prepared for the possibility that future catastrophes will produce losses exceeding any historical amounts," said Bill Churney of AIR Worldwide.

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Cyber-risk, including data breaches and computer viruses, is second only to businesses' concerns about medical-cost inflation, according to the 2015 Travelers Business Risk Index. Twenty-three percent of respondents said they are highly concerned about cyber-risk, while 58% reported being somewhat worried. Other top concerns include employee benefits costs, legal liability and regulatory compliance, the survey found.

Rates for catastrophe-exposed and non-catastrophe-exposed commercial property risks could drop as much as 15% this year, Willis Group Holdings says. The relatively low level of losses from recent catastrophes, however, has allowed reinsurers to have some success in achieving returns, the report says.

The average annual insured losses from natural disasters and terrorism have risen in recent years to reach an estimated $72.6 billion, according to a report from AIR Worldwide. "Companies operating on a world stage need to understand their risk across global exposures to ensure they have sufficient capital to survive years of very high loss," Bill Churney of AIR Worldwide said in a statement.

Legislative changes in Florida are resulting in a more stable property insurance market, but the state remains vulnerable to hurricanes and other natural catastrophes, writes Donovan Brown of PCI. "Together, consumers, insurers, and public policymakers must remain vigilant and stay prepared. ... For insurers that means taking appropriate steps to be ready to help residents by paying claims swiftly and assisting them in returning to normal life as quickly as possible after a catastrophic loss," Brown writes.

Companies appear more likely to buy cyber-risk coverage if a policy is based on existing needs and new exposures, and offers value-added services designed to avoid data breaches and manage cyberattacks, industry experts say. Selling such coverage to small to medium-sized businesses remains a challenge because of such firms' lack of resources and expertise to address cyber-risk, experts said. Insurers can introduce these companies to third-party vendors that specialize in cybersecurity to manage the exposure, consultant Richard Betterley says.